A half-point rate cut by the Federal Reserve this week has not yet filtered its way into consumers' pockets, according to the CreditCards.com Weekly Credit Card Rate Report, which finds rates mixed this week.
Of the nine credit card categories tracked by CreditCards.com, two increased, three fell and four remained flat.
Rates for card categories tracked by CreditCards.com are listed below:
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Credit Card Rate Averages | ||||||
 |  |  | ||||
Avg. APR | Last week | 6 months ago | ||||
Balance Transfer | 10.04% | 10.08% | 9.64% | |||
Business | 11.59% | 11.43% | 9.77% | |||
Low Interest | 10.73% | 10.73% | 10.49% | |||
Bad Credit | 10.87% | 10.87% | 12.49% | |||
Cash Back | 11.76% | 11.65% | 10.96% | |||
Instant Approval | 11.58% | 11.58% | 9.94% | |||
Reward | 11.70% | 11.77% | 11.39% | |||
Airline | 12.33% | 12.60% | 12.56% | |||
Student |  | 14.66% |  | 14.66% |  | 15.00% |
Source: CreditCards.com | ||||||
Updated: 10-09-08 |
The Fed's action, cutting the fed funds rate to 1.5 percent, was extraordinary in two ways -- it came outside the Fed's regular meeting schedule, and it was part of a coordinated set of rate cuts by central bankers worldwide.
When the Fed cuts the fed funds rate, it usually cuts borrowing costs for people who carry a balance on variable rate cards. Those cards' rates are pegged to the prime rate, which moves in step with the prime.
That may not be true this time. Many cards have hit "floor" rates beyond which they will not fall, and most issuers are under financial pressure themselves and may adjust their terms to keep the rate cut for themselves.
The CreditCards.com credit card rate survey is conducted weekly using offer data from the leading U.S. card issuers. Rate movement may be influenced by changes in the composition of offers tracked.
Introductory offer periods and regular interest rates vary with applicants' credit quality and issuer risk-based pricing policies.
About CreditCards.com
CreditCards.com is a leading online credit card marketplace connecting consumers with multiple credit card issuers, including nine of the 10 largest in the United States, based on credit card transaction volume. CreditCards.com, http://www.creditcards.com, enables consumers to search for, compare and apply for more than 150 credit cards and offers credit card issuers an online channel to acquire qualified applicants.
NOTE TO EDITORS: The information in this release is available for print or broadcast with attribution to CreditCards.com.